Phnom Penh Post AS Cambodia’s major growth industries face a prolonged slowdown sparked by the global financial crisis, the government must develop a better social safety net to lessen the effects of increased joblessness and poverty on human development, according to a new UN report.
Titled “Global economic downturn: opportunity or crisis?”, the report examines the impact of the financial crisis on Cambodia and recommends mitigating policies – including the creation of a system that ensures a basic standard of living, improves income and food security, and provides vocational training.
Speaking at the launch of the report on Monday, Chan Sophal, president of the Cambodian Economic Association and the report’s research team leader, said: “Right now, we have many activities to assist the poor, but these are scattered over hundreds of NGOs and programmes from donor governments. They are not developing as an integrated social protection system.”
Douglas Broderick, UN resident coordinator, said Cambodia’s social spending was low for a developing country. “On average, safety net expenditure in developing countries is in the range of 1 to 2 percent of GDP, but Cambodia’s estimated expenditure is currently lower than 1 percent,” he said.
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